CONTRACTING: SETTING AND MEETING EXPECTATIONS

JANUARY 28, 2013 FRANK BATTEN SCHOOL OF LEADERSHIP AND PUBLIC POLICY, UNIVERSITY OF VIRGINIA

BEGIN WITH THE END IN MIND

You’ll be satisfied if you end the project with:

A client who values your contribution and will refer you to others… Is “super pleased”

Fully engaged organization Organizational changes that will be adopted Leadership signed on and participating Line staff see value and adopt measures

Recommendations implemented

Problem solved

Tools and talents within organization to sustain change

HOW WILL YOU GET THERE?

Contracting is using imagination and experience to envision the path

To ensure that you can complete it over and above expectations.

Begins with client and consultant relationship

Consultant’s task is to listen and ask good questions What do they see as their needs? The end deliverable they seek? What is your analysis of the problem and the

appropriate solution?

WHAT IS YOUR CAPACITY TO ASSIST?

Assess the match between their needs and your expertise and skills

Assess level of risk: Is the assignment realistic? Is the client’s view of the approach the most effective?

Develop your own interpretation of the “presenting problem “

Say “yes” only if you have the skills, or the capacity to learn and excel quickly

Know what you don’t know. Bring in others to assist or offer only the services you know you can deliver

Give your skills a sober and ambitious assessment

KNOWING WHAT TO CHARGE

Be precise in your estimate of hours

Ask for detailed description of client’s desired outcome.

Spend considerable time understanding the scope and deliverable: do not rush contracting

Break down project into phases for good estimate, i.e.,: Background reading Interviews with key staff and leadership Facilitation Site visits Writing and revising reports Analyzing results with team Meetings with client…..

Estimating work and budget

SETTING RATES

In estimating, match dollars with hours

Be comfortable talking with client about your rates early

Do not provide “back of the envelope” estimate

Clarify client’s budget early - before contracting

Consider additional costs of doing business Transportation, materials, lodging

Publish and share rates with clients pre-contract

CONTRACT COMPONENTS

Be clear what is yours and what the client will do 50/50 is what Flawless Consulting (Block) calls

for

Write expectations down, such as: 24-hour turn around on review of documents Schedule and arrange all meetings. Take minutes Time with top leadership – CEO and Board Completion of “homework” on time Time dedicated to complete the plan or project

Client expectations

FINALIZING CONTRACT

You have complete clarity on the charge and final product

You understand to the best of your ability the time it will take you

You have allowed for some unpredictability

You provide a draft to the client to review

Arrive at a final agreement together

There is trust and rapport between you and the client

Proposal may go through several rounds

Request signature of Board Chair and CEO

KEY COMPONENTS

Categories can include: Consultant Approach Steps to Take Agency Expectations Deadlines and Deliverables Qualifications Budget

What else?

What are essential pieces of contract?

BUDGET

Lump Sum Requires good estimating skills Simpler billing process Predictable revenue stream Allows for more flexibility in approach

Hourly within Outside Figure Pay as you go Unpredictable revenue stream Less risk of being underpaid Less chance of being overpaid

Requesting “lump sum” or hourly free

ATTRIBUTES OF A GOOD CONTRACT

Early: Top leadership understand and can articulate

what you will be doing Consultant understands the path forward and

the resources he/she will need to complete

Later: Client’s project is complete, problem is resolved Client evaluation is positive Deadlines and deliverables met Measureable change in organization for the

better